KKR and TIGA Investments have agreed to buy The Executive Centre (TEC), a provider of premium flexible office space solutions in Asia-Pacific and the Middle East.

Hong Kong-based TEC, founded in 1994, now serves more than 32,000 members across over 150 centres in 32 cities and 14 markets.

TEC pulled a sale process, reportedly seeking up to US$750m (€) for the business, in September 2019 because offers then not up to its expectation at a time when Hong Kong was experiencing political unrest in Hong Kong.

KKR made its investment through its investment funds. Financial details of the transaction were not disclosed.

HPEF Capital Partners, formerly HSBC Private Equity, is thought to own 70% of the company, while Luxembourg-based CVC Partners a further 20% with management holding the remaining 10%.

As part of the transaction, funds advised by HPEF and CVC Capital will exit their investments in TEC. Members of TEC’s management team will continue to own shares in the company.

Lim Song Joo, a managing director at KKR, said: “As we look ahead to the market’s evolving needs, flexibility will be key in companies’ future workplace strategies.”

Lim said TEC was well-placed to capture new growth opportunities and to build on its longstanding leadership position in Asia’s premium workspace segment.

Raymond Zage III, founder of TIGA, based in Singapore, said that as the future of work increasingly shifted towards a hybrid model, the new investors looked forward to helping TEC elevate to its next phase of growth across the region.

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